Why Fed Will Pull The Rug Today

Discussion in 'Trading' started by shortie, Jun 24, 2009.

SPY Reaction to Fed Today

  1. +3%

    5 vote(s)
  2. +1.5%

    3 vote(s)
  3. Flat

    17 vote(s)
  4. -1.5%

    7 vote(s)
  5. -3%

    5 vote(s)
  1. And Why Not?

    Now is as good time as any. Fed better act fast before an average investor goes 4x Long.

    The market seems very vulnerable right now. Look at SPY and VIX: SPY is just coming from the most oversold level since march and VIX shows NO FEAR.

    Any negative surprise from Fed will surely draw some major blood from the bulls.

  2. .
  3. You're short volatility into the Fed, right?
  4. yes, but i don't want to close my positions because of transaction costs. i will shift my bias to short if we keep moving higher into the Fed announcement.
  5. Div_Arb


    Dude... Do you really let comission costs dictate your money management??
  6. I really doubt the FED would pull a move THAT retarded. If normal people start seeing -2%, -3% declines again, they'll go back into the bunker.
  7. The Fed is in "maniuplation of sentiment via stock market" mode....

    Not only will they not "take the punch bowl away now"... they probably won't do so even when inflation gets roaring... :(
  8. With the uptrend stalled or more than likely failed, all I am looking for right now is an opportunity to short from more attractive levels. Mean reversion longs worked terribly for me this week. I mean, if it hits 920 do you want to get longer?
  9. I suppose there is always a first time, but Bernanke shows absolutely no intent on protecting the US's future, has completely thrown the US Dollar to the fire without remorse, and is fine with spiking crude and other commodities just as long as his precious banks are protected.

    It is either genius to go short here, or sheer madness.
  10. topherea


    Yup. kinda what I was thinking as I believe we're either gonna correct a bit, or move sideways. Fwiw, my bias leans to sideways.
    #10     Jun 24, 2009